Oil and gas firm Santos taps Japan's Hokkaido Gas for LNG supply (updated)
28/05/2024 09:30
(Updates with details of deal, background)
May 28 (Reuters) - Santos will supply up to about
400,000 tonnes of liquefied natural gas every year for a decade
starting 2027 to Japanese energy firm Hokkaido Gas 9534.T ,
Australia's second biggest independent oil and gas producer said
on Tuesday.
The firms will work on e-methane and carbon sequestration
opportunities as global oil and gas companies move towards
cleaner forms of energy.
The supply deal comes at a time when the industry executives
of the natural gas sector in Australia have been calling for
more measures to bring back an investment environment which has
been damaged by a slew of state interventions in a bid to curb
rising energy prices and boost domestic supply.
The deal demonstrates strong demand for high heating value
LNG from Santos' major projects such as Barossa and PNG LNG.
Australia's government in May put out a strategy to boost
natural gas development despite the country's commitment to net
zero carbon emissions by 2050, indicating soaring demand from
Asian partners.
(Reporting by Roshan Thomas in Bengaluru; Editing by Nivedita
Bhattacharjee)
((Roshan.Thomas@thomsonreuters.com;))